According to Bloomberg News, the Securities and Exchange Commission (SEC) examines whether Coinbase Global Inc (COIN.O) improperly allowed Americans to trade digital assets that should have been registered as securities.
According to a Coinbase representative, the business does not list securities on its platform, and the regulator declined to comment on the report. Coinbase’s legal chief, Paul Grewal, stated that the business would consult with the SEC on the situation. “We are sure that our thorough verification procedure, which the SEC has already evaluated,” Grewal added, “keeps securities off our platform.”
The SEC’s attention has intensified since the crypto trading platform extended the number of tokens it offers to trade.
The SEC’s enforcement unit’s investigation precedes its investigation into an alleged insider trading scheme, which was announced last week.
In the first cryptocurrency insider trading case, US authorities charged Ishan Wahi, a former Coinbase product manager, with providing secret knowledge about upcoming announcements of additional cryptocurrency assets that Coinbase would allow users to trade through its exchange.
The SEC declined to confirm whether it would take action against Coinbase for offering the coins classified securities in the complaint at the time.
The cryptocurrency platform has previously requested that the regulator adopt guidelines for digital asset securities.
